On the Sustainable Economic Growth in Sub-Saharan Africa: Do Remittances, Human Capital Flight, and Brain Drain Matter?

To solve the active macroeconomic challenges of remittances, human capital flight, and brain drain facing Sub-Saharan Africa (SSA) from the perspective of costs and benefits tradeoffs for achieving Sustainable Development Goal eight (SDGs-8) targets by 2030 and the recipient communities’ wellbeing,...

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Bibliographic Details
Published inSustainability Vol. 14; no. 4; p. 2117
Main Authors Usman, Mohammed A. M., Ozdeser, Huseyin, Çavuşoğlu, Behiye, Aliyu, Umar Shuaibu
Format Journal Article
LanguageEnglish
Published Basel MDPI AG 01.02.2022
Subjects
Altruism
Brain
Brain drain
Consumption
Convergence
Corruption
Diaspora
Economic development
Economic growth
Economics
Employment
Error correction
Flight
Human capital
Income inequality
International finance
Labor market
Low income groups
Poverty
Remittances
Social networks
Social organization
Statistical analysis
Sustainability
Sustainable development
United States > US
Sub-Saharan Africa
Africa
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Summary:To solve the active macroeconomic challenges of remittances, human capital flight, and brain drain facing Sub-Saharan Africa (SSA) from the perspective of costs and benefits tradeoffs for achieving Sustainable Development Goal eight (SDGs-8) targets by 2030 and the recipient communities’ wellbeing, this study investigates the sustainable economic growth in SSA: Do remittances, human capital flight, and brain drain matter? Autoregressive-Distributive Lag (ARDL) and the Error-Correction Mechanism (ECM) were used. Thus, this research is led by push–pull, altruism, and social network theories. The ARDL showed that remittances and trade positively affect economic growth. However, human capital flight, poverty, corruption, and inequality negatively affect economic growth. The co-efficient of ECTt−1 is ascertained to be negative (−0.266282) with a significant statistical value of 1% (i.e., 0.0123). Therefore, the annual requirement to restore equilibrium convergence is 26.62%. The study concludes that SSA may achieve their sustainable economic growth target, particularly by formalizing remittances and human capital flight and brain drain into the financial, economic system in SSA by 2030, since restoration to long-term convergence will take less than nine years. Enabling a labor market that offers decent work and wages, along with trade and remittance policies for sustainable growth, are recommended.
ISSN:2071-1050
2071-1050
DOI:10.3390/su14042117